Assuming that the net foreign debt of the United States accounts for 25% of the total...
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Assuming that the net foreign debt of the United States accounts for 25% of the total U.S. GDP, these debts generate an annual interest rate of 5%. Will the interest paid annually on net foreign debt create a huge burden on the U.S. GDP (in percentage terms)? Do you think this is a huge number? What if the net foreign debt is 100% of GDP? To what extent do you think a country's external debt should be a concern for the government? Assuming that the net foreign debt of the United States accounts for 25% of the total U.S. GDP, these debts generate an annual interest rate of 5%. Will the interest paid annually on net foreign debt create a huge burden on the U.S. GDP (in percentage terms)? Do you think this is a huge number? What if the net foreign debt is 100% of GDP? To what extent do you think a country's external debt should be a concern for the government?
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To calculate the annual interest paid on the net foreign debt of the United States we first need to determine the amount of the net foreign debt If th... View the full answer
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